CBOT trade was active overnight with traders and world markets continuing to react to USDA’s WASDE. Physical prices in Europe and the Black Sea are rising, and Paris futures followed the trend higher as well. The day session at the CBOT, however, saw more consolidation trade with limited volume. Corn and wheat finished lower while soybeans settled slightly higher after USDA reported another round of “flash” export sales. Open interest in CBOT soybeans, wheat, and corn is growing, suggesting the post-WASDE rally is due to more than just short covering. Wheat, canola/rapeseed, and soon corn harvests are either ongoing or starting across the Northern Hemisphere, which will help provide direction for the markets, as well as th...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.